Behind the Middle-Class Funk

The recession hurt, but some troubles have been simmering for 40 years.

By

William A. Galston

Aug. 6, 2013 6:29 pm ET

President Obama is working hard to refocus attention on the middle class, and rightly so. While a decent society will provide opportunity and, when necessary, direct assistance to the poor, the long-term health of our economy and our democracy depends on a prosperous, self-confident middle class.

That's not what we've had in recent years. Median incomes fell sharply during the Great Recession and have barely begun to recover. Despite recent signs of recovery, housing—the principal source of wealth for middle-class households—remains...